MINING CORPORATIONS – AUSTRALIA

Virus fears cloud BHP outlook

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Original article by Nick Evans
The Australian – Page: 17 & 22 : 19-Feb-20

BHP has posted a 2019-20 interim net profit of $US4.87bn ($7.29bn), which is 29 per cent higher than previously. Underlying EBITDA rose by 15 per cent to $US12.1bn, with a rise in the price of iron and copper boosting this figure by $US1.5bn. CEO Mike Henry says the coronavirus has had a limited impact on BHP to date, but he warns that commodity exports may be affected if the outbreak is not contained by the end of March. Shareholders will receive a record half-year dividend of $US0.65 per share.

CORPORATES
BHP GROUP LIMITED – ASX BHP

South32 calls for clear guidance on scope 3

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 14-Feb-20

Diversified miner South32 has posted a 2019-20 interim net profit of $US99m, which is 84 per cent lower than previously. The group’s underlying earnings fell 80 per cent to $US131m and revenue was down 16 per cent due to lower prices for its key commodities. CEO Graham Kerr says South32’s focus is on Scope 1 carbon emissions at present, but he argues that all companies will eventually need to address their Scope 3 emissions. He adds that governments must clarify how planning approvals will take Scope 3 emissions into account.

CORPORATES
SOUTH32 LIMITED – ASX S32

Virus slows Rio Tinto copper sales

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 13-Feb-20

The Oyu Tolgoi copper mine is located in the Khanbogd province, where the Mongolian government has declared a state of emergency due to the coronavirus. Rio Tinto has advised that Mongolia’s efforts to contain the virus’s spread will result in shipments of copper concentrate being delayed. The mine’s output is usually shipped across the border to China via trucks. BHP also recently advised that its copper shipments to China may be delayed, while OZ Mineral has indicated that it has not yet been impacted by the coronavirus outbreak.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, OZ MINERALS LIMITED – ASX OZL

BHP could pay out $3b extra cash for investors

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Original article by Luke Housego
The Australian Financial Review – Page: 30 : 12-Feb-20

Macquarie has forecast that BHP will report underlying earnings of $US12.52bn for the first half of 2019-20, which would be 14 per cent higher than previously. Macquarie also expects BHP to announce an interim dividend of $US0.76 per share, while the firm adds that there is potential for a special dividend of up to $US0.40 per share. BHP will release its interim results on 18 February.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MACQUARIE GROUP LIMITED – ASX MQG

Cyclone hits Pilbara iron ore mines

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Original article by Peter Ker
The Australian Financial Review – Page: 4 : 10-Feb-20

Tropical Cyclone Damien has been downgraded to category 1 status after crossing the coast of Western Australia. Iron ore mines in the Pilbara are bracing for heavy rain, with the airport that services Fortescue Metals Group’s Solomon mining hub having received more than 200 millimetres of rain in just 24 hours. Rio Tinto’s iron ore ports at Dampier remained closed on 9 February, although Port Hedland reopened on the previous day.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP

BHP in box seat to buy troubled Peabody mine

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 7-Feb-20

Peabody Energy is seeking a buyer for its North Goonyella coking coal mine in Queensland, and it has signalled that it is open to a joint venture arrangement. BHP is seen as a potential buyer of the mine, given that it owns nearby assets such as the Goonyella Riverside mine and the undeveloped Red Hill project. Production at North Goonyella has been on hold since part of the mine was damaged by a fire in 2018.

CORPORATES
PEABODY ENERGY CORPORATION, PEABODY ENERGY AUSTRALIA COAL PTY LTD, BHP GROUP LIMITED – ASX BHP

Rio joins Telstra in supplier backflip

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Original article by Jared Lynch, Nick Evans
The Australian – Page: 17 & 20 : 6-Feb-20

Rio Tinto CFO Simon Trott has advised that about 90 per cent of its Australian suppliers will now be paid within 20 days. Businesses with annual turnover of up to $10m will also now be designated as a small supplier, rather than just those which supply up to $1m worth of goods and services to the resources giant each year. Rio Tinto recently shelved its ‘dynamic discounting’ scheme, while Telstra has also reduced its payment terms to just 20 days. Small Business & Family Enterprises Ombudsman Kate Carnell says other large companies should do so.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN

Worker safety the top priority, says mine boss

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Original article by Sarah Elks
The Australian – Page: 5 : 3-Feb-20

BHP Mitsubishi Alliance executive James Palmer says health and safety is the mining company’s top priority. He was commenting on an internal document regarding an accident at one of its coal mines in Queensland, in which a bulldozer operator nearly drowned when his machine overturned in a water-filled pit. Investigators had queried why the pit was not emptied before work began; according to the document, there was an internal mandate to keep trucks running in order to meet production targets. Palmer says that what was presented in the document is not how things are presented in the company’s safety messages. Eight workers have died in Queensland quarries and coalmines in the past 18 months.

CORPORATES
BM ALLIANCE COAL OPERATIONS PTY LTD, BHP GROUP LIMITED – ASX BHP, MITSUBISHI CORPORATION

Drought to hit Newcrest mine

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Original article by Nick Evans
The Australian – Page: 20 : 31-Jan-20

Newcrest Mining has advised that it produced 551,000 ounces of gold in the December quarter, which is eight per cent higher than previously. Its all-in-sustaining cost of production fell by $US40 an ounce to $US859. Newcrest’s flagship Cadia mine in New South Wales produced 239,722 ounces of gold and 26,478 tonnes of copper during the quarter. However, Newcrest has warned that the declining water supply at Cadia means that production cuts may be necessary before the end of the year if the drought persists.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM

Flu or no, Fortescue eyes export record

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 31-Jan-20

Fortescue Metals Group’s iron ore shipments from the Pilbara topped 88.6 million tonnes in the first half of 2019-20. A similar performance in the second half would see the group beat its previous full-year record of 170.4 million tonnes. CEO Elizabeth Gaines says the pure-play miner has not yet received any requests from steelmakers in Hubei to delay shipments, despite the temporary closure of the province’s ports due to the coronavirus outbreak.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG